Bill Summary

The Factories (Amendment) Bill, 2016

The Factories (Amendment) Bill, 2016 was introduced

in Lok Sabha on August 10, 2016 by the Minister for
Labour and Employment, Mr. Bandaru Dattatreya.

The Bill amends the Factories Act, 1948. The Act

regulates the safety, health and welfare of factory
workers. The Bill amends provisions related to
overtime hours of work.

Power to make rules on various matters: The Act

permits the state government to prescribe rules on a
range of matters, including double employment, details
of adult workers to be included in the factorys register,
conditions related to exemptions to certain workers, etc.
The Bill gives such rule making powers to the central
government as well.
Powers to make rules for exemptions to workers:
Under the Act, the state government may make rules to
(i) define persons who hold management or confidential
positions; and (ii) exempt certain types of adult workers
(e.g. those engaged for urgent repairs) from fixed
working hours, periods of rest, etc. The Bill gives such
rule making powers to both, the central and state
governments.

Under the Act, such rules will not apply for more than
five years. The Bill modifies this provision to state that
the five-year limitation will not apply to rules made
after the enactment of this Bill.

Overtime hours of work in a quarter: The Act

permits the state government to make rules related to
the regulation of overtime hours of work. However, the
total number of hours of overtime must not exceed 50
hours for a quarter. The Bill raises this limit to 100
hours. Rules in this regard may be prescribed by the
central government as well.

Overtime hours if factory has higher workload: The

Act enables the state government to permit adult
workers in a factory to work overtime hours if the
factory has an exceptional work load. Further the total
number of hours of overtime work in a quarter must not
exceed 75. The Bill permits the central or state
government to raise this limit to 115.

Overtime in public interest: The Bill introduces a

provision which permits the central or state government
to extend the 115-hour limit to 125 hours. It may do so
because of (i) excessive work load in the factory and
(ii) public interest.

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Prianka Rao
prianka@prsindia.org

August 10, 2016

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